Agriculture Fruit Farm Business Plan

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Farmers Group
Table of Contents
Executive Summary.......................................................................................................................1
Mission............................................................................................................................................2
Company Summary.......................................................................................................................2
Start-up Summary............................................................................................................................3
Table: Start-up............................................................................................................................3
Chart: Start-up............................................................................................................................4
Company Locations and Facilities...................................................................................................7
Products..........................................................................................................................................7
Product Description.........................................................................................................................8
Technology......................................................................................................................................8
Future Products................................................................................................................................9
Market Analysis Summary...........................................................................................................9
Market Segmentation.....................................................................................................................10
Target Market Segment Strategy...................................................................................................11
Chart: Market Analysis (Pie)....................................................................................................11
Table: Market Analysis.............................................................................................................11
Industry Analysis...........................................................................................................................12
Strategy and Implementation Summary...................................................................................12
Competitive Edge..........................................................................................................................13
Sales Strategy.................................................................................................................................13
Sales Forecast...........................................................................................................................14
Chart: Sales Monthly.................................................................................................................14
Chart: Sales by Year..................................................................................................................15
Table: Sales Forecast................................................................................................................15
Management Summary...............................................................................................................16
Management Team........................................................................................................................16
Personnel Plan...............................................................................................................................16
Table: Personnel.......................................................................................................................17
Financial Plan Summary.............................................................................................................17
Start-up Funding............................................................................................................................17
Table: General Assumptions.....................................................................................................20
Projected Cash Flow......................................................................................................................20
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information and is shared only with the understanding that you will not share its contents or ideas with
third parties without the express written consent of the plan author.
Farmers Group
Chart: Cash...............................................................................................................................21
Break-even Analysis......................................................................................................................23
Chart: Break-even Analysis.......................................................................................................23
Table: Break-even Analysis.......................................................................................................24
Projected Profit and Loss...............................................................................................................24
Chart: Profit Monthly................................................................................................................24
Chart: Profit Yearly...................................................................................................................25
Chart: Gross Margin Monthly..................................................................................................25
Chart: Gross Margin Yearly.....................................................................................................26
Projected Balance Sheet................................................................................................................27
Table: Balance Sheet.................................................................................................................28
Business Ratios..............................................................................................................................29
Table: Ratios.............................................................................................................................30
Appendix..........................................................................................................................................i
Table: Sales Forecast......................................................................................................................i
Table: General Assumptions........................................................................................................ii
Table: Cash Flow..........................................................................................................................iii
Table: Balance Sheet....................................................................................................................iv
Table: Profit and Loss...................................................................................................................v
Table: Personnel...........................................................................................................................vi

Farmers Group
Executive Summary
Introduction
Farmers Group is being formed from the acquisition of two successful vegetable farms, Green
Acres Vegetable Farm and Mobile Farmers Vegetable Farm. The latter has long-researched
horticultural and agronomic techniques, as well as compost and soil blending technology now
being promoted by the DEO, the USDA, the EPA, and other government agencies.
The company is a combination of cutting edge, highest quality, and efficient food technology and
production. It is committed to the improvement of food taste and nutritional quality. It is being
founded to build upon an extensive array of biological and horticultural education, experience,
and the research of its founders. This is further coupled with the experience of James Jackson,
the current manager of Mobile Farmers Vegetable Farm, and consultation with the present owner
of Green Acres Vegetable Farm, Errol Grynthum.
The Company
Farmers Group is an Alabama-based company, located in Calhoun county, whose mission is to

provide high quality, nutritional, and flavorful vegetables and strawberries for consumption in
both near and remote regions of the United States. Additionally the company will provide high
quality planting materials for use nationwide.
Farmers Group is the buyout and merger of two successful vegetable farms. The idea behind the
business is to provide healthy and delicious vegetables and fruit to the public. In addition to
vegetables and fruits, the company plans to produce and market manure compost garden
amendment products.
Farmers Group's management team is led by Mr. James Jackson as Business Manager, who has
extensive knowledge of the industry. The company expects to employ five temporary employees
during the equipment re-location phase, four employees on a permanent basis, and three part-
time employees.
Products
Farmers Group plans to concentrate on vegetables as its primary product. This includes growing
carrots, romaine lettuce, leeks, red onions, summer squash, spinach, pumpkins, winter squash,
globe beets, and winter greens. The company's farm will have a capacity sufficient to produce in
excess of 200,000 lbs. of vegetables per year.

Farmers Group
The company plans to utilize traditional and more advanced plant technologies to produce new
cultivars of strawberries and lima beans with locally-adapted superior characteristics for the
Gulf-South growing area.
This strategy will allow Farmers Group to produce crops during most of the year and will allow
double cultivation of the greenhouses with almost no additional heating necessary in the winter
months.
The Market
Over the past decade the market for organic food has grown by 15% to 20% and every year 40%
of U.S. consumers occasionally reach for something labeled organic. Sales for organic foods are
expected to top $11 billion this year. Sales by farmers' markets have increased by 79% since
1994, to 3,137 markets in all 50 states, and the number of farmers who sell at them has more than
tripled to 67,000. About three million Americans a week now get their fresh food directly from
the farmers who grew it. This makes for an excellent environment for a industry participant such
as Farmers Group that is willing to compete in a niche market and be first to the market with new
products.
Financial Considerations
The company is seeking $830,000 in both short-term and long-term loans to finance the purchase
of Farmers Group's new farm, upgrade the facilities, and cover start-up expenses and first year
losses. It is estimated that the company will begin to make a profit in Year 2 of operations. The
company does not expect to have any cash flow problems during the first four years of
operations.
Mission
Farmers Group is an Alabama-based company, whose mission is to provide high quality,
nutritional, and flavorful vegetables and strawberries for consumption in both near and remote
regions of the United States. Additionally the company will provide high quality planting
materials for use nationwide.
Company Summary
Farmers Group is the buyout and merger of two successful vegetable farms. The idea behind the
business is to provide healthy and delicious vegetables and fruit to the public. In addition to
vegetables and fruits, the company plans to produce and market manure compost garden
amendment products.

Farmers Group
Start-up Summary
Projected revenues for Year 1 to Year 5 are $-40,000, $8,500, $50,000, $70,800 and $82,500
respectively. Additionally the company estimates that once fully operational, income per
product, per annum would be as follows; vegetable ($50,000) manure ($20,000) and horticulture
($10,000).
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $19,000
Facilities modification $300,000
Seed $600
Organic Herbicides/Pesticides $5,000
Consultants $25,000
Insurance $10,000
Research and development $25,000
Expensed equipment $250,000
Other $50,000
Total Start-up Expenses $684,600
Start-up Assets
Cash Required $245,400
Start-up Inventory $150,000
Other Current Assets $250,000
Long-term Assets $500,000
Total Assets $1,145,400
Total Requirements $1,830,000
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Farmers Group
Chart: Start-up
Start-up
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Expenses Assets Investment Loans
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Farmers Group
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Farmers Group
Company Locations and Facilities

The farm is located in Calhoun county approximately 4.5 miles outside of Jasper.
The operation will utilize:
 One large greenhouse, enclosing the vegetable area.

 Horticultural greenhouse.
 Filters, water treatment devices.
 Backwash facilities.
 Outdoor vegetable facilities.
 Business office building.
An additional portion of the operation will be the manure composting facility. Local and regional
dairy operations have trouble with manure accumulations, and the company hopes to enter into
contracts in removing the manure. Farmers Group will then turn this into a saleable product. The
company plans to supply the region's nursery outlets with a top-quality, premium garden and soil
amendment product for area horticulture.
Products
While at Mobile Farmers Vegetable Farm James Jackson, steadily used and experimented with
compost and fertilized with manure of different kinds. The most important things with manure
usage is to eliminate the viable weed seed drawback by thoroughly composting the manure, to
add enough cellulose on product to bring it to the proper ratio and to bring its water content to
proper levels. A properly composted manure product has no seeds that will germinate and
proliferate in it. Additionally, a properly composted manure product has something a chemically
formulated synthetic fertilizer does not have: enzymes. Enzymes are critical for producing a truly
nutritious and superior flavored product. Research has shown that the superior flavor of a fruit or
vegetable is closely related to vitamin content and folic acid content in green vegetables.
The state-of-the-art vegetable equipment starting up in the new location utilizes revolutionary
harvest designs that:
 Allow faster, longer growth

 Cut the harvest labor by over 80%
 Cut the harvest time and by so doing:
o Decrease loss in weight gain, and
o Eliminate weight loss from shock.
Product Description
Vegetables
7
Farmers Group
Farmers Group's first line of production will be the green vegetable and red vegetable. During
the summer months Farmers Group will be growing carrots, romaine lettuce, leeks, red onions,
summer squash, and spinach. In the fall, production will center on pumpkins, winter squash,
globe beets and winter greens. With the growth of the popular organic food niche, and the federal
government's new organic labeling policy, Farmers Group will focus its produce on the
intermediate organic label. This means that approximately 70% of the food production process
will be organic and all foods produced by Farmers Group will be eligible for the "contains
organic ingredients" label. The company's farm will have a capacity sufficient to produce in
excess of 200,000 lbs. of vegetables per year.
Strawberries
The company's more technical horticultural aspects include efforts to utilize traditional and more
advanced plant technologies to produce new cultivars of crops such as strawberries and lima
beans with locally-adapted superior characteristics for the Gulf-South growing area. Flavor,
disease resistance, adaptability to green-house culture, fall and winter season production are
factors being combined in greens cultivation to tap into the $2.99 pint berry market of the fall
and winter.
Farmers Group's strategy is a combination of the two technologies during the cool winter months
which will allow the utilization of normally wasted space in the greenhouses for the high price
winter greens production. This will allow double cultivation of the greenhouses with almost no
additional heating necessary in this climate.
Technology
The company is currently seeking contact with Alabama universities in order to learn about and
acquire new hybrids of strawberries and vegetables that are hardier and grow faster in our local
microclimates. These and other available species and systems will be constantly tracked.
In addition to the above, the company is seeking contacts at Universities in Italy and Germany
that are involved in greens, and will continue the quest for the best flavored, large, and firm fall
and winter strawberries.
Currently, Farmers Group is conducting research to test certain clay-sand-manure mixture levels
to obtain better, cheaper bedding and agronomic soil mixtures that are more effective than the
standard used in the industry in Alabama (Pine bark mulch-composted).
Future Products
In the meantime, the company would like to explore the possibilities of crayfish production.
Farmers Group believes this to be a high revenue venture with retail prices running in excess of
$15.00 per pound in most places. The company also believes that if crayfish production is
successful then it could become the number one endeavor of Farmers Group.
8
Farmers Group
Currently there is a defunct fish farming production facility with all the necessary capital
equipment approximately two miles from the current farm. Purchase of this facility would allow
Farmers Group to begin production and to capitalize on this higher margin product. What makes
this most attractive is the two ventures have significant joint cost potential, allowing for a
reduction in marginal costs for all products and creation of real economies of scale that would
provide Farmers Group with a competitive advantage.
Market Analysis Summary

At a time when eating has become a political statement, the government is paying up to $19
billion a year to subsidize commodity crops in a glutted global market. Federal officials say that
nearly 40% of all farm income now comes directly from government subsidies, and the farm bill
signed by President Bush this year will pay $190 billion over 10 years, which includes $83
billion in new spending. However, there are two market niches that are growing at an amazing
rate, the organic market and the simple farmers' market.
The organic market provides less than 2% of the nation's food supply and takes up less than 1%
of its cropland. But organic farms are flourishing as never before. Over the past decade the
market for organic food has grown by 15 to 20% and every year 40% of U.S.
consumers occasionally reach for something labeled organic. Sales for organic foods are
expected to top $11 billion this year. Conglomerates as big as Heinz and General Mills are now
launching or buying organic lines and selling them in mainstream supermarkets.*
With no subsidies and no middle men, farmers' markets have increased by 79% since 1994, to
3,137 markets in all 50 states, and the number of farmers who sell at them has more than tripled
to 67,000, the Agriculture Department has reported. About three million Americans a week now
get their fresh food directly from the farmers who grew it. "Right now, green markets are
growing faster than anything in agriculture," said Dr. Steven Blank, a farm economist at the
University of California at Davis and the author of three books on the subject.
These numbers, of course, represent a very thin slice of the big pie of national food. Farmers'
markets reported about $1 billion in sales last year, compared with more than $200 billion in
overall farm revenue. Barely 3% of the nation's two million farmers sell some of what they grow
directly to consumers.
But in an era of big-box food stores, when 10 major grocery chains control the purchase of 50%
of fresh food, the proliferation of open-air markets has come out of nowhere, giving more
consumers an option and allowing many small farmers to stay in business.**
With these trends in mind, Farmers Groups will concentrate on:
 Wholesale live vegetable markets nationwide that sell organic produce.

 Fresh farmers' markets.
 Fall and winter greens market.
 Nursery outlets selling composted manure.
9
Farmers Group
*Source: Certified Organic Geoffrey Cowley NEWSWEEK September 30, 2000.
**Source: Farmers Markets Booming Across US Timothy Egan New York Times, September
29, 2000.
Market Segmentation
The target customers include oriental vegetable markets demanding organic and semi-organic
green vegetables, vegetable processors, and private individual buyers through direct selling and
farmers markets. The company will continue to service the existing customers of the purchased
vegetable farms. In its greens production the company will target virtually all main food outlets.
The company plans to use the Internet as one of its marketing channels in the future.
The company's target customers will be as follows:
Vegetables:
 Oriental vegetable markets demanding organic and semi-organic vegetables.

 Vegetable processors.
 Alabama National Guard.
 People approaching the farm.
 Roadside stands and farmers' markets.
Product-Bagged Manure:
 Nursery and Garden Centers.

 Private customers approaching facility.
 Bulk customers.
The company will also take over customers from the previous owner of the vegetable facility.
Farmers Group has an established list of present customers of Errol Grynthum's vegetable farm,
which is a major asset to the sales of the company.
Target Market Segment Strategy

The Market Analysis Pie shown below reflects the total number of potential customers for
Farmers Group. The number of Oriental markets and vegetable processors represent national
estimates of industry participants, whereas the number of individual buyers represents the
estimated annual number of individuals that will be driving by the farm.
10
Farmers Group
Chart: Market Analysis (Pie)

Market Analysis (Pie)
Vegetable processors
Oriental vegetable markets
Individual buyers
Table: Market Analysis
Market
Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Growth CAGR
Customers
Vegetable 3% 5,000 5,150 5,305 5,464 5,628 3.00%
processors
Oriental 1% 25,000 25,250 25,503 25,758 26,016 1.00%
vegetable
markets
Individual 5% 300,000 315,000 330,750 347,288 364,652 5.00%
buyers
Total 4.68% 330,000 345,400 361,558 378,510 396,296 4.68%
automatically.
11
Farmers Group
Industry Analysis
Alabama is one of the premier farming areas of the eastern United States. This creates an
intensely competitive environment with a large number of industry participants. Since almost all
of the produce is considered to be commodities, and large scale buyers are more consolidated
than the farmers themselves, overall margins are small and rivalries for wholesaler contracts are
strong. Competitive threats come from three main segments:
 Imported vegetables of lower quality.>

 Mississippi pound raised vegetables.
 Alabama vegetable producers.
Direct competition in the individual buyers’ market segment comes from three farms in the
immediate area including the Anniston farm, Organics-To-You farm, and the Terrance
Livingston vegetable farm. Each of these competitors has produce stands as well as selling to
local farmers' markets. However, with the exception of Organics-To-You Farm, none of the
others focus on a niche market and depend heavily on federal subsidies.
Strategy and Implementation Summary

The Farmers Group strategy is to profitably and efficiently utilize present and future agricultural
technology in the production of vegetables. The company, by acquiring an existing profitable
vegetable farm with all the necessary custom-innovated equipment, will gain a significant
industry advantage. Additional application and utilization of horticultural technology in the
production of strawberries will allow double utilization of the climate controled portion of the
overhead. Farmers Group hopes to consolidate considerable goodwill already created by
exercising the option of not adding another high-production facility to the present supply-
demand scenario.
The company's goals in the first year are to:
 Prepare the future site.

 Relocate and expand Green Acres vegetable system and get it operational.
 Integrate greens culture into the system.
 Have the composting system in full production by early spring of the second year.
The company's long-term plan is to phase out whichever products are least lucrative and replace
them with products that are practical and cost efficient.
Competitive Edge
Farmers Group's main competitive advantages are:
12
Farmers Group
 Efficient production utilizing greenhouses.

 Reduced overhead by fully realizing crop output potential and economies of scale
through joint costs.
 Knowledge due to research since 1988.
Sales Strategy
Farmers Group will initially market and supply its products to target customers. The company is
further exploring marketing opportunities on the Internet. To this extent, the company would like
to set up a website to market its products.
The company will utilize aggressive advertising strategies to further market its products. These
strategies include the promotion of products through the sponsoring of spots on cooking shows
and exhibitions, and also engaging prominent chefs to help promote this fledgling industry.
The company sets its pricing based on market rates as far as vegetable products are concerned.
Farmers Group's pricing for strawberries will exceed the average market price for the following
reasons:
 Taste sampling at outlets will be encouraged.

 Unparalleled flavor superiority will addict greens tasters.
 Promotion of pesticide-free, fumigant-free cultural techniques of soil, environment,
ozone, and health-friendly production techniques.
 At Farmers Group, the sales process is primarily the same for vegetables as it is for
composting products, in that both products will be mainly sold through wholesale
marketing. As in the past, live shipments will be delivered by contract carriers in special
oxygenated tanks carrying 8,000 vegetables or more, and will be continued as demanded.
Farmers Group's bagged manure products will be delivered and unloaded in sizable
wholesale quantities by the pallet.
 Smaller, more local orders will significantly increase the overall sales when the 300-450
live vegetables carrying tank system is put into service late in 2000 or early in 2001.
 The company's average sales cycle from first contact to closing of the sale is
approximately 3 to 12 days for vegetable products. Farmers Group plans to shorten this
cycle. Furthermore, the company estimates that from first contact to sale conclusion, the
cycle for fresh strawberries will run 3 days or less. Composted products sale cycle should
run from 3 to 12 days.
 Direct sales contacts of vegetable markets by delivery personnel, as well as cold calling
by telephone of potential market outlets, will also be employed.
The company has strategic alliances with:
 Alabama State University Horticulture Department

 Southeastern Alabama State University Biology Department
 Dr. Michael Smith - Vegetable Specialist
13
Farmers Group
 James Edwards - Horticultural Inspection

 Charles Newton - Wildlife
 Alabama Wildlife
 Mobile Nursery Center
Sales Forecast
The following table and charts show our projected sales.
Chart: Sales Monthly

Sales Monthly
$180,000
$160,000
$140,000
$120,000
$100,000 Sales
$80,000 Other
$60,000
$40,000
$20,000
$0
Month 1 Month 3 Month 5 Month 7 Month 9 Month 11
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14
Farmers Group
Chart: Sales by Year

Sales by Year
$1,000,000
$900,000
$800,000
$700,000
$600,000 Sales
$500,000 Other
$400,000
$300,000
$200,000
$100,000
$0
Table: Sales Forecast
Sales Forecast
Sales
Sales $575,000 $700,000 $850,000 $889,100 $927,331
Other $0 $0 $0 $0 $0
Total Sales $575,000 $700,000 $850,000 $889,100 $927,331
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

Sales $391,000 $478,100 $578,850 $601,032 $627,803
Other $0 $0 $0 $0 $0
Subtotal Direct Cost $391,000 $478,100 $578,850 $601,032 $627,803
of Sales
Management Summary
Farmers Group's management team is led by Mr. James Jackson, Business Manager, and the
current manager of Mobile Farmers Vegetable Farm, who has extensive knowledge of the
industry and has been tracking vegetable trends for 30 years.
The company's management philosophy is based on responsibility and mutual respect. Farmers
Group has an environment and structure that encourages productivity and respect for customers
and fellow employees.
15
Farmers Group
Management Team
Management will be responsible for supervising and participating in the daily operations of the
facility. Management consists of:
 James Jackson, Business Manager, Full Time

 Terry Howard, Executive Director, Full Time
 Kevin Perry, Management Trainee, 3/4 Time
 Victor Green, Management Trainee, 1/4 Time
Personnel Plan
Overall, Farmers Group will have 12 personnel. The company expects to employ 5 temporary
employees during the equipment re-location phase, 4 employees on a permanent basis, and 3
part-time employees.
Daily Maintenance
This group will consist of the following:
 Henry Jones, Logistical Engineer, Full Time

 Colin Henry, Heavy Equipment, Full Time
 Michael Owen, Welder, 1/2 Time
Contract Personnel
They will be utilized initially for the moving and setting up of the vegetable farm, greenhouses,
and the building of the manure composting facility.
Table: Personnel
Personnel Plan
Business Manager $25,000 $30,000 $30,000 $30,000 $30,000
Executive Director $25,000 $30,000 $30,000 $30,000 $30,000
16
Farmers Group
Manager Trainee $9,000 $6,000 $6,000 $6,000 $6,000

Manager Trainee $4,000 $6,000 $6,000 $6,000 $6,000
Logistic engineer $18,000 $18,000 $18,000 $18,000 $18,000
Heavy equipment $18,000 $18,000 $18,000 $18,000 $18,000
Welder $3,500 $3,000 $3,000 $3,000 $3,000
Contract workers $15,000 $0 $0 $0 $0
Total People 7 7 7 7 7
Total Payroll $117,500 $111,000 $111,000 $111,000 $111,000
automatically.
Financial Plan Summary

The following topics and tables outline our financial plan.
Start-up Funding
Funding Requirements and Uses
The company is seeking to raise of $830,000 for the purpose of financing the acquisition of the
Green Acres Vegetable Farm and Mobile Farmers Vegetable Farm, facilities modifications,
equipment, and funding operating expenses. Another $1,000,000 will be invested in the company
by its four co-owners. The following is a breakdown of how the funds will be used:
Breakdown of Use of Funds

Acquisition:
Property $1,300,000
Equipment System $400,000
Sub-total $1,700,000
Operating Expenses:
Salaries $80,000
17
Farmers Group
Marketing and promotion $10,000

Other operating expenses $10,000
Sub-total $100,000
Total $1,800,000
18
Farmers Group
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $684,600
Start-up Assets to Fund $1,145,400
Total Funding Required $1,830,000
Assets
Non-cash Assets from Start-up $900,000
Cash Requirements from Start-up $245,400
Additional Cash Raised $0
Cash Balance on Starting Date $245,400
Total Assets $1,145,400
Liabilities and Capital
Liabilities
Current Borrowing $400,000
Long-term Liabilities $400,000
Accounts Payable (Outstanding Bills) $30,000
Other Current Liabilities (interest-free) $0
Total Liabilities $830,000
Capital
Planned Investment
Investor 1 $250,000
Investor 2 $250,000
Investor 3 $250,000
Investor 4 $250,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $1,000,000
Loss at Start-up (Start-up Expenses) ($684,600)

Total Capital $315,400
Total Capital and Liabilities $1,145,400
Total Funding $1,830,000
19
Farmers Group
Important Assumptions
Nature and Limitation of Projections
This financial projection is based on sales volume at the levels described in the sales
forecast section and presents, to the best of management's knowledge, the company's expected
assets, liabilities, capital, and revenues and expenses. The projections reflect management's
judgement of the expected conditions and its expected course of action given the hypothetical
assumptions.
Nature of Operations
The company is in the business of vegetable farming, greens cultivation, and composting. The
company expects to be operating in 2000.
Revenues
The company's revenue is derived primarily from the sale of vegetables, strawberries, and
bagged composted manure products.
Expenses
The company's expenses are primarily those of salaries, utilities, and insurance costs. Other
expenses are based on management's estimates and industry averages.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5
Current Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00%
Long-term Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00%
Tax Rate 20.83% 20.00% 20.83% 20.00% 20.83%
Other 0 0 0 0 0
Projected Cash Flow

The chart and table below contain the cash flow assumptions and projections for Farmers Group
during the first five years of plan implementation. Year 1 monthlies are presented in the
appendix.
20
1 Mo
MonthMonth 2
Farmers Group
Chart: Cash
Cash
$240,000
$200,000
$160,000
$120,000
Net Cash Flow
$80,000
Cash Balance
$40,000
$0
($40,000)
($80,000)
Table: Cash Flow
21
Farmers Group
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $143,750 $175,000 $212,500 $222,275 $231,833
Cash from Receivables $431,250 $525,000 $637,500 $666,825 $695,498
Subtotal Cash from
$575,000 $700,000 $850,000 $889,100 $927,331
Operations
Additional Cash Received

Sales Tax, VAT, HST/GST
$0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities
$0 $0 $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current
$0 $0 $0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $97,000 $0 $0
Subtotal Cash Received $575,000 $700,000 $947,000 $889,100 $927,331
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from
Operations
Cash Spending $117,500 $111,000 $111,000 $111,000 $111,000
Bill Payments $408,920 $525,422 $676,335 $686,874 $721,183
Subtotal Spent on
$526,420 $636,422 $787,335 $797,874 $832,183
Operations
Additional Cash Spent

$0 $0 $0 $0 $0
Paid Out
Principal Repayment of
$54,000 $100,000 $100,000 $25,000 $35,000
Current Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0
Repayment
Long-term Liabilities
$0 $25,000 $25,000 $50,000 $50,000
Principal Repayment
Purchase Other Current
$0 $0 $0 $0 $20,000
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $25,000 $20,000 $10,000 $10,000
Subtotal Cash Spent $580,420 $786,422 $932,335 $882,874 $947,183
22
Farmers Group
Net Cash Flow ($5,420) ($86,422) $14,665 $6,226 ($19,852)

Cash Balance $239,980 $153,559 $168,224 $174,450 $154,598
Break-even Analysis
The company's break-even analysis is given below.
Chart: Break-even Analysis

Break-even Analysis
$10,000
$8,000
$6,000
$4,000
$2,000
$0
($2,000)
($4,000)
($6,000)
($8,000)
($10,000)
$0 $12,000 $24,000 $36,000 $48,000 $60,000

$6,000 $18,000 $30,000 $42,000 $54,000 $66,000
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $36,974
23
Farmers Group
Assumptions:
Average Percent Variable Cost 68%
Estimated Monthly Fixed Cost $11,832
Projected Profit and Loss

As the profit and loss table shows, Farmers Group expects a steady growth in profitability over
the next few years.
Chart: Profit Monthly

Profit Monthly
$40,000
$30,000
$20,000
$10,000
$0
($10,000)

24
Farmers Group
Chart: Profit Yearly

Profit Yearly
$100,000
$80,000
$60,000
$40,000
$20,000
$0
($20,000)
Chart: Gross Margin Monthly

Gross Margin Monthly
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
25
Farmers Group
Chart: Gross Margin Yearly

Gross Margin Yearly
$300,000
$270,000
$240,000
$210,000
$180,000
$150,000
$120,000
$90,000
$60,000
$30,000
$0
26
Farmers Group
Table: Profit and Loss
Pro Forma Profit and

Loss
Sales $575,000 $700,000 $850,000 $889,100 $927,331
Direct Cost of Sales $391,000 $478,100 $578,850 $601,032 $627,803
Other $10,000 $10,000 $10,000 $10,000 $10,000
Total Cost of Sales $401,000 $488,100 $588,850 $611,032 $637,803
Gross Margin $174,000 $211,900 $261,150 $278,068 $289,528

Gross Margin % 30.26% 30.27% 30.72% 31.28% 31.22%
Expenses
Payroll $117,500 $111,000 $111,000 $111,000 $111,000
Sales and Marketing and
$11,400 $11,100 $16,550 $15,300 $17,550
Other Expenses
Depreciation $0 $0 $0 $0 $0
Gas and Oil $2,040 $3,000 $3,000 $3,000 $3,000
Utilities $6,000 $6,000 $6,000 $6,000 $6,000
Insurance $5,040 $5,500 $5,500 $5,500 $5,500
Payroll Taxes $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0
Total Operating
$141,980 $136,600 $142,050 $140,800 $143,050
Expenses
Profit Before Interest

$32,020 $75,300 $119,100 $137,268 $146,478
and Taxes
EBITDA $32,020 $75,300 $119,100 $137,268 $146,478
Interest Expense $54,664 $47,845 $39,095 $32,095 $26,495
Taxes Incurred $0 $5,491 $16,668 $21,035 $24,996
Net Profit ($22,644) $21,964 $63,337 $84,139 $94,987

Net Profit/Sales -3.94% 3.14% 7.45% 9.46% 10.24%
automatically.
Projected Balance Sheet

We project solid cash balance and net worth over the years of the plan.
27
Farmers Group
Table: Balance Sheet
Pro Forma Balance

Sheet
Assets
Current Assets
Cash $239,980 $153,559 $168,224 $174,450 $154,598
Accounts Receivable $0 $0 $0 $0 $0
Inventory $55,760 $53,589 $64,243 $57,206 $60,112
Other Current Assets $250,000 $250,000 $250,000 $250,000 $270,000
Total Current Assets $545,740 $457,147 $482,467 $481,655 $484,710
Long-term Assets
Long-term Assets $500,000 $500,000 $500,000 $500,000 $500,000
Accumulated
$0 $0 $0 $0 $0
Depreciation
Total Long-term Assets $500,000 $500,000 $500,000 $500,000 $500,000
Total Assets $1,045,740 $957,147 $982,467 $981,655 $984,710
Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable $6,984 $46,427 $56,410 $56,460 $59,527
Current Borrowing $346,000 $246,000 $146,000 $121,000 $86,000
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current
$352,984 $292,427 $202,410 $177,460 $145,527
Liabilities
Long-term Liabilities $400,000 $375,000 $350,000 $300,000 $250,000

Total Liabilities $752,984 $667,427 $552,410 $477,460 $395,527
Paid-in Capital $1,000,000 $1,000,000 $1,097,000 $1,097,000 $1,097,000

Retained Earnings ($684,600) ($732,244) ($730,280) ($676,943) ($602,804)
Earnings ($22,644) $21,964 $63,337 $84,139 $94,987
Total Capital $292,756 $289,720 $430,057 $504,196 $589,182
Total Liabilities and
$1,045,740 $957,147 $982,467 $981,655 $984,710
Capital
Net Worth $292,756 $289,720 $430,057 $504,196 $589,182
automatically.
28
Farmers Group
Business Ratios
The business ratios given below are contrasted to industry standards for SIC code 0161 which
covers vegetable and melon growers. Within this category, research has shown that there can be
significant deviations from industry standards due to farm size, product life cycle, and capital
resources.
Farmers Group is a start-up venture, and therefore has a more heavy debt to equity ratio than
most existing farms. Furthermore, due to its move into a niche market, the company is expected
to spend more on advertising than its competitors. The first two years of operations are expected
also to have a higher growth rate than average as it gains market share.
Table: Ratios
29
Farmers Group
Ratio Analysis
Industry
Profile
Sales Growth n.a. 21.74% 21.43% 4.60% 4.30% -4.60%
Percent of Total Assets

Accounts Receivable 0.00% 0.00% 0.00% 0.00% 0.00% 12.90%
Inventory 5.33% 5.60% 6.54% 5.83% 6.10% 14.40%
Other Current Assets 23.91% 26.12% 25.45% 25.47% 27.42% 28.90%
Total Current Assets 52.19% 47.76% 49.11% 49.07% 49.22% 56.20%
Long-term Assets 47.81% 52.24% 50.89% 50.93% 50.78% 43.80%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities 33.75% 30.55% 20.60% 18.08% 14.78% 31.10%

Long-term Liabilities 38.25% 39.18% 35.62% 30.56% 25.39% 20.50%
Total Liabilities 72.00% 69.73% 56.23% 48.64% 40.17% 51.60%
Net Worth 28.00% 30.27% 43.77% 51.36% 59.83% 48.40%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 30.26% 30.27% 30.72% 31.28% 31.22% 32.00%
Selling, General &
37.26% 29.04% 24.76% 23.31% 22.31% 20.70%
Administrative Expenses
Advertising Expenses 0.83% 0.71% 1.23% 1.20% 1.23% 0.20%
Profit Before Interest
5.57% 10.76% 14.01% 15.44% 15.80% 1.70%
and Taxes
Main Ratios
Current 1.55 1.56 2.38 2.71 3.33 1.65
Quick 1.39 1.38 2.07 2.39 2.92 0.88
Total Debt to Total
72.00% 69.73% 56.23% 48.64% 40.17% 51.60%
Assets
Pre-tax Return on Net
-7.73% 9.48% 18.60% 20.86% 20.36% 2.20%
Worth
Pre-tax Return on Assets -2.17% 2.87% 8.14% 10.71% 12.18% 4.50%
Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin -3.94% 3.14% 7.45% 9.46% 10.24% n.a
Return on Equity -7.73% 7.58% 14.73% 16.69% 16.12% n.a
Activity Ratios
Accounts Receivable
0.00 0.00 0.00 0.00 0.00 n.a
Turnover
Collection Days 60 0 0 0 0 n.a
Inventory Turnover 3.93 8.74 9.83 9.90 10.70 n.a
Accounts Payable 55.25 12.17 12.17 12.17 12.17 n.a
30
Farmers Group
Turnover
Payment Days 29 17 27 30 29 n.a
Total Asset Turnover 0.55 0.73 0.87 0.91 0.94 n.a
Debt Ratios
Debt to Net Worth 2.57 2.30 1.28 0.95 0.67 n.a
Current Liab. to Liab. 0.47 0.44 0.37 0.37 0.37 n.a
Liquidity Ratios
Net Working Capital $192,756 $164,720 $280,057 $304,196 $339,182 n.a
Interest Coverage 0.59 1.57 3.05 4.28 5.53 n.a
Additional Ratios
Assets to Sales 1.82 1.37 1.16 1.10 1.06 n.a
Current Debt/Total
34% 31% 21% 18% 15% n.a
Assets
Acid Test 1.39 1.38 2.07 2.39 2.92 n.a
Sales/Net Worth 1.96 2.42 1.98 1.76 1.57 n.a
Dividend Payout 0.00 1.14 0.32 0.12 0.11 n.a
automatically.
31
Farmers Group
Appendix
Table: Sales Forecast
Sales Forecast
Month Month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10
11 12
Sales
Sales 0% $0 $0 $10,000 $25,000 $40,000 $55,000 $100,000 $175,000 $120,000 $50,000 $0 $0
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $0 $0 $10,000 $25,000 $40,000 $55,000 $100,000 $175,000 $120,000 $50,000 $0 $0
Month Month
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10
11 12
Sales $0 $0 $6,800 $17,000 $27,200 $37,400 $68,000 $119,000 $81,600 $34,000 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of
$0 $0 $6,800 $17,000 $27,200 $37,400 $68,000 $119,000 $81,600 $34,000 $0 $0
Sales
i
CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the
understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.
Farmers Group
Table: General Assumptions
General
Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest
7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Rate
Long-term Interest
7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Rate
Tax Rate 30.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
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ii
Farmers Group
Table: Cash Flow

Pro Forma Cash Flow
Cash Received
Cash from Operations

Cash Sales $0 $0 $2,500 $6,250 $10,000 $13,750 $25,000 $43,750 $30,000 $12,500 $0 $0
Cash from Receivables $0 $0 $0 $250 $7,875 $19,125 $30,375 $42,375 $76,875 $129,875 $88,250 $36,250
Subtotal Cash from Operations $0 $0 $2,500 $6,500 $17,875 $32,875 $55,375 $86,125 $106,875 $142,375 $88,250 $36,250
Additional Cash Received

0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $0 $0 $2,500 $6,500 $17,875 $32,875 $55,375 $86,125 $106,875 $142,375 $88,250 $36,250
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations

Cash Spending $11,500 $11,500 $11,000 $7,500 $7,000 $9,500 $9,000 $9,500 $10,000 $10,500 $10,000 $10,500
Bill Payments $30,250 $7,507 $7,509 $7,573 $7,571 $7,508 $10,129 $91,730 $178,012 $46,511 $7,394 $7,225
Subtotal Spent on Operations $41,750 $19,007 $18,509 $15,073 $14,571 $17,008 $19,129 $101,230 $188,012 $57,011 $17,394 $17,725
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Out
Principal Repayment of Current
$0 $0 $0 $0 $5,000 $15,000 $4,000 $0 $0 $0 $30,000 $0
Borrowing
Other Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $41,750 $19,007 $18,509 $15,073 $19,571 $32,008 $23,129 $101,230 $188,012 $57,011 $47,394 $17,725
Net Cash Flow ($41,750) ($19,007) ($16,009) ($8,573) ($1,696) $867 $32,246 ($15,105) ($81,137) $85,364 $40,856 $18,525
Cash Balance $203,650 $184,643 $168,634 $160,061 $158,365 $159,232 $191,478 $176,373 $95,236 $180,599 $221,455 $239,980
iii
Farmers Group
Table: Balance Sheet

Pro Forma Balance Sheet
Starting
Assets
Balances
Current Assets
Cash $245,400 $203,650 $184,643 $168,634 $160,061 $158,365 $159,232 $191,478 $176,373 $95,236 $180,599 $221,455 $239,980
Accounts Receivable $0 $0 $0 $7,500 $26,000 $48,125 $70,250 $114,875 $203,750 $216,875 $124,500 $36,250 $0
Inventory $150,000 $150,000 $150,000 $143,200 $126,200 $99,000 $61,600 $74,800 $130,900 $89,760 $55,760 $55,760 $55,760
Other Current Assets $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
Total Current Assets $645,400 $603,650 $584,643 $569,334 $562,261 $555,490 $541,082 $631,153 $761,023 $651,871 $610,859 $563,465 $545,740
Long-term Assets
Long-term Assets $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Total Assets $1,145,400 $1,103,650 $1,084,643 $1,069,334 $1,062,261 $1,055,490 $1,041,082 $1,131,153 $1,261,023 $1,151,871 $1,110,859 $1,063,465 $1,045,740
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $30,000 $7,256 $7,256 $7,321 $7,321 $7,260 $7,176 $85,647 $176,417 $46,265 $7,153 $6,984 $6,984
Current Borrowing $400,000 $400,000 $400,000 $400,000 $400,000 $395,000 $380,000 $376,000 $376,000 $376,000 $376,000 $346,000 $346,000
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $430,000 $407,256 $407,256 $407,321 $407,321 $402,260 $387,176 $461,647 $552,417 $422,265 $383,153 $352,984 $352,984
Long-term Liabilities $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000
Total Liabilities $830,000 $807,256 $807,256 $807,321 $807,321 $802,260 $787,176 $861,647 $952,417 $822,265 $783,153 $752,984 $752,984
Paid-in Capital $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Retained Earnings ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600) ($684,600)
Earnings $0 ($19,007) ($38,013) ($53,387) ($60,460) ($62,171) ($61,494) ($45,894) ($6,794) $14,206 $12,306 ($4,919) ($22,644)
Total Capital $315,400 $296,393 $277,387 $262,013 $254,940 $253,229 $253,906 $269,506 $308,606 $329,606 $327,706 $310,481 $292,756
Total Liabilities and
$1,145,400 $1,103,650 $1,084,643 $1,069,334 $1,062,261 $1,055,490 $1,041,082 $1,131,153 $1,261,023 $1,151,871 $1,110,859 $1,063,465 $1,045,740
Capital
Net Worth $315,400 $296,393 $277,387 $262,013 $254,940 $253,229 $253,906 $269,506 $308,606 $329,606 $327,706 $310,481 $292,756
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iv
Farmers Group
Table: Profit and Loss
Pro Forma Profit

and Loss
Sales $0 $0 $10,000 $25,000 $40,000 $55,000 $100,000 $175,000 $120,000 $50,000 $0 $0
Direct Cost of Sales $0 $0 $6,800 $17,000 $27,200 $37,400 $68,000 $119,000 $81,600 $34,000 $0 $0
Other $800 $800 $867 $867 $833 $833 $833 $833 $833 $833 $833 $833
Total Cost of Sales $800 $800 $7,667 $17,867 $28,033 $38,233 $68,833 $119,833 $82,433 $34,833 $833 $833
Gross Margin ($800) ($800) $2,333 $7,133 $11,967 $16,767 $31,167 $55,167 $37,567 $15,167 ($833) ($833)
Gross Margin % 0.00% 0.00% 23.33% 28.53% 29.92% 30.48% 31.17% 31.52% 31.31% 30.33% 0.00% 0.00%
Expenses
Payroll $11,500 $11,500 $11,000 $7,500 $7,000 $9,500 $9,000 $9,500 $10,000 $10,500 $10,000 $10,500
Sales and
Marketing and $950 $950 $950 $950 $950 $950 $950 $950 $950 $950 $950 $950
Other Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gas and Oil $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170
Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $420 $420 $420 $420 $420 $420 $420 $420 $420 $420 $420 $420
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating
$13,540 $13,540 $13,040 $9,540 $9,040 $11,540 $11,040 $11,540 $12,040 $12,540 $12,040 $12,540
Expenses
Profit Before
($14,340) ($14,340) ($10,707) ($2,407) $2,927 $5,227 $20,127 $43,627 $25,527 $2,627 ($12,873) ($13,373)
Interest and Taxes
EBITDA ($14,340) ($14,340) ($10,707) ($2,407) $2,927 $5,227 $20,127 $43,627 $25,527 $2,627 ($12,873) ($13,373)
Interest Expense $4,667 $4,667 $4,667 $4,667 $4,638 $4,550 $4,527 $4,527 $4,527 $4,527 $4,352 $4,352
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($19,007) ($19,007) ($15,373) ($7,073) ($1,711) $677 $15,600 $39,100 $21,000 ($1,900) ($17,225) ($17,725)
Net Profit/Sales 0.00% 0.00% -153.73% -28.29% -4.28% 1.23% 15.60% 22.34% 17.50% -3.80% 0.00% 0.00%
v
Farmers Group
Table: Personnel
Personnel Plan
Business Manager 0% $1,500 $1,500 $1,500 $1,500 $1,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Executive Director 0% $1,500 $1,500 $1,500 $1,500 $1,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Manager Trainee 0% $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Manager Trainee 0% $0 $0 $0 $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000
Logistic engineer 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Heavy equipment 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Welder 0% $500 $500 $0 $500 $0 $500 $0 $500 $0 $500 $0 $500
Contract workers 0% $5,000 $5,000 $5,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 12 12 12 7 7 7 7 7 7 7 7 7
Total Payroll $11,500 $11,500 $11,000 $7,500 $7,000 $9,500 $9,000 $9,500 $10,000 $10,500 $10,000 $10,500
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Agriculture Fruit Farm Business Plan

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Agriculture Fruit Farm Business Plan

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CONFIDENTIAL

Copyright Palo Alto Software, Inc., 2020 All rights reserved.

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

Table: Sales Forecast......................................................................................................................i

Table: General Assumptions........................................................................................................ii

Table: Cash Flow..........................................................................................................................iii

Table: Balance Sheet....................................................................................................................iv

Table: Profit and Loss...................................................................................................................v

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

Farmers Group is an Alabama-based company, located in Calhoun county, whose mission is to

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

Total Requirements $1,830,000

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

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CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret

Company Locations and Facilities

The operation will utilize:

 One large greenhouse, enclosing the vegetable area.

 Allow faster, longer growth

Market Analysis Summary

With these trends in mind, Farmers Groups will concentrate on:

 Wholesale live vegetable markets nationwide that sell organic produce.

*Source: Certified Organic Geoffrey Cowley NEWSWEEK September 30, 2000.

The company's target customers will be as follows:

 Oriental vegetable markets demanding organic and semi-organic vegetables.

 Nursery and Garden Centers.

Target Market Segment Strategy

Chart: Market Analysis (Pie)

Oriental vegetable markets

Table: Market Analysis

 Imported vegetables of lower quality.>

Strategy and Implementation Summary

The company's goals in the first year are to:

 Prepare the future site.

 Efficient production utilizing greenhouses.

 Taste sampling at outlets will be encouraged.

The company has strategic alliances with:

 Alabama State University Horticulture Department

 James Edwards - Horticultural Inspection

The following table and charts show our projected sales.

Chart: Sales Monthly

Chart: Sales by Year

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5

 James Jackson, Business Manager, Full Time

This group will consist of the following:

 Henry Jones, Logistical Engineer, Full Time

Manager Trainee $9,000 $6,000 $6,000 $6,000 $6,000

Total Payroll $117,500 $111,000 $111,000 $111,000 $111,000

Financial Plan Summary

Breakdown of Use of Funds

Marketing and promotion $10,000

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($684,600)

Total Capital and Liabilities $1,145,400

Total Funding $1,830,000

Table: General Assumptions